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Mobile computing and data collection systems supplier purchased

It was recently announced that an agreement has been reached for Midwich to acquire the entire issued ordinary share capital of Synergix Limited, distributor of auto-ID, mobile computing and data collection technologies.

With 2007 sales of £7m and 22 staff, the company is known for its range of added value services such as repairs and maintenance, and extensive reseller technical support.

 

Midwich’s expanding auto-ID business, which was launched in late 2007, is to be amalgamated with that of Synergix. The combined business will operate under the Synergix name and will be run by Graham Fenton, the company’s current managing director. 

 

Commenting on the transaction, Fenton said: 'Synergix has a long history of independence with a very strong base of loyal customers and vendors. However, we have found it increasingly frustrating that, despite our in-depth technical knowledge and high service levels, the company’s lack of scale has precluded it from a number of the larger rollouts in the industry.  The deal we have agreed with Midwich gives us the strength and support needed to win more of these larger deals, whilst maintaining our specialist skills and operational independence.

 

'Midwich’s extensive IT customer base, large sales resource and marketing expertise should help to increase market penetration for our vendors. Our staff will have access to more customers, more products and, ultimately, more opportunities for personal development within a large group.'

 

Alex Ward, Midwich’s commercial director, said: 'Midwich launched an auto-ID division in late 2007, having identified an opportunity to exploit our high service culture to roll out these technologies to our extensive customer base. We have invested in people and marketing in order to provide support to the IT reseller community to promote and sell these products. The initial success of this operation has exceeded our plan, helped in no small part by our recruitment of Alain Picard from Zebra Technologies earlier this year.

 

'We have identified that there is very little crossover of customers between the two companies – and a large number of potential customers with which neither business trades currently. The opportunities for our businesses are very exciting and we look forward to working with Graham, Alan Ayres (sales and marketing director), Sheila Porter (administration director) and their colleagues at Synergix.'

 

Stephen Fenby, the finance director of Midwich, who led the transaction, added: 'It is important that we use Midwich’s resources to help Synergix to build upon its strong reputation. For us, this means recognising the skills within the business and the particular features and requirements of the company’s customers and vendors. We have seen examples of disastrous acquisitions by others – often where a buyer tries to fit a small technical business into its own volume business model without considering what makes the target special. The end result can be de-motivated staff, a significant drop in customer service and suppliers, which feel unappreciated. We are determined not to make those mistakes.'

Article Details
Author: Staff writer
Date: 29/7/08
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